Section 46. Notes and bonds of the agency

1. (a) Subject to the provisions
  of section forty-seven of this article, the agency shall have power  and
  is hereby authorized from time to time to issue its negotiable bonds and
  notes in conformity with applicable provisions of the uniform commercial
  code in such principal amount as, in the opinion of the agency, shall be
  necessary  to  provide  sufficient  funds  for  achieving  its corporate
  purposes, including the making  or  financing  the  making  of  mortgage
  loans,  the  payment  of  interest  on  bonds  and  notes of the agency,
  establishment of reserves to secure such bonds and notes, and all  other
  expenditures  of  the  agency incident to and necessary or convenient to
  carry out its corporate purposes and powers;
    (b) The agency shall have power, from time to time, to  issue  renewal
  notes,  to  issue  bonds  to  pay  notes  and whenever it deem refunding
  expedient, to refund any bonds by the issuance of new bonds, whether the
  bonds to be refunded have or have not matured, and to issue bonds partly
  to refund bonds then outstanding and partly for any other  purpose.  The
  refunding  bonds shall be sold and the proceeds applied to the purchase,
  redemption or payment of the bonds to be refunded;
    (c) Except as may otherwise be expressly provided by the agency, every
  issue of its notes or bonds shall be general obligations of  the  agency
  payable out of any revenues or monies of the agency, subject only to any
  agreements  with  the  holders of particular notes or bonds pledging any
  particular receipts or revenues;
    2. a. The notes and bonds, except as  provided  in  paragraph  (c)  of
  subdivision  four  of this section, shall be authorized by resolution of
  the members, shall bear such date or dates, and  shall  mature  at  such
  time  or  times,  in the case of any such note, or any renewals thereof,
  issued for achieving its corporate purposes other  than  the  making  or
  financing  the  making  of mortgage loans, not exceeding the term of any
  applicable lease or sublease, and in the case of any such note,  or  any
  renewals  thereof,  issued  for  the  purpose of making or financing the
  making of mortgage loans, not exceeding the term for  the  repayment  of
  the  mortgage  loan  or  the federally guaranteed securities acquired to
  finance such mortgage loan, and  in  the  case  of  any  such  bond  not
  exceeding  fifty  years  from  the  date of issue, as such resolution or
  resolutions may provide.
    b. In no event, however, shall any such note mature, in the case of  a
  note  or  any  renewals thereof, issued for the purpose of achieving its
  corporate purposes other than the making  or  financing  the  making  of
  mortgage  loans,  later  than eight years from the date of issue of such
  original note, and, in the case of  a  note  or  any  renewals  thereof,
  issued  for  the  purpose  of making or financing the making of mortgage
  loans, later than ten years from the date  of  issue  of  such  original
  note,  unless in each year at least that amount of principal is required
  to be paid as would be required if (i) the principal of and interest  on
  any  such note were payable in such manner that the total annual charges
  required for the payment of principal and  interest  were  approximately
  equal  and  constant for the period of such lease, sublease or mortgage,
  as the case may be, and (ii) at the  expiration  of  the  term  of  such
  lease,  sublease  or  mortgage, the total of such required payments were
  sufficient to pay the full  principal  amount  of  such  note;  provided
  however, that such manner of payment of principal shall be required only
  from  the  date of the issuance of such note or from the commencement of
  the lease or sublease term in the case of a lease or sublease  and  from
  the  occupancy  date  in  the case of a mortgage whichever later occurs.
  Such payment of principal may be made either to the holder of such  note
  or  into  a  sinking  fund.  Notwithstanding the foregoing, no such note
  shall be issued pursuant to this paragraph b unless the  state  director

  of  the  budget  has  approved  the issuance of any such note in writing
  prior to such issuance.
    c.  The  notes and bonds shall bear interest at such rate or rates, be
  in such denominations, be in such form,  either  coupon  or  registered,
  carry  such  registration  privileges,  be  executed  in such manner, be
  payable in such medium of payment,  at  such  place  or  places  and  be
  subject  to  such  terms of redemption as such resolution or resolutions
  may provide. The notes and bonds of  the  agency  may  be  sold  by  the
  agency, at public or private sale, at such price or prices as the agency
  shall  determine.  No  notes  or  bonds of the agency may be sold by the
  agency at private sale, however, unless such sale and the terms  thereof
  have been approved in writing by (a) the comptroller, where such sale is
  not  to  the  comptroller, or (b) the director of the budget, where such
  sale is to the comptroller.
    3. Except as provided in paragraph (d) of  subdivision  four  of  this
  section, any resolution or resolutions authorizing any notes or bonds or
  any  issue  thereof may contain provisions, which shall be a part of the
  contract with the holders thereof, as to:
    (a) pledging all or any part of the fees and charges made or  received
  by  the agency, and all or any part of the monies received in payment of
  mortgage loans  or  the  federally  guaranteed  securities  acquired  to
  finance  such  mortgage  loans  and  interest  thereon, and other monies
  received or to be received, to secure the payment of the notes or  bonds
  or  of any issue thereof, subject to such agreements with bondholders or
  noteholders as may then exist;
    (b) pledging all or any part of the assets of  the  agency,  including
  mortgages  or  the  federally  guaranteed securities acquired to finance
  such mortgage loans and obligations securing the  same,  to  secure  the
  payment of the notes or bonds or of any issue of notes or bonds, subject
  to such agreements with noteholders or bondholders as may then exist;
    (c)  the  use and disposition of the gross income from mortgages owned
  or financed by the agency and payment of principal of mortgages owned by
  the agency;
    (d) the setting aside of reserves or sinking funds and the  regulation
  and disposition thereof;
    (e)  limitations on the purpose to which the proceeds of sale of notes
  or bonds may be applied and pledging such proceeds to secure the payment
  of the notes or bonds or of any issue thereof;
    (f) limitations on the issuance of  additional  notes  or  bonds;  the
  terms  upon  which  additional notes or bonds may be issued and secured;
  the refunding of outstanding or other notes or bonds;
    (g) the procedure, if any, by which the terms  of  any  contract  with
  noteholders  or  bondholders  may be amended or abrogated, the amount of
  notes or bonds the holders of which must consent thereto, and the manner
  in which such consent may be given;
    (h) limitations on the amount of monies to be expended by  the  agency
  for operating, administrative or other expenses of the agency;
    (i) vesting in a trustee or trustees such property, rights, powers and
  duties  in  trust  as the agency may determine, which may include any or
  all of the rights, powers and duties of the  trustee  appointed  by  the
  bondholders  pursuant  to  this  article, and limiting or abrogating the
  right of the bondholders to appoint a  trustee  under  this  article  or
  limiting the rights, powers and duties of such trustee;
    (j)  any  other  matters, of like or different character, which in any
  way affect the security or protection of the notes or bonds.
    4. (a) Subject to the provisions of subdivisions  three  and  four  of
  section  forty-seven of this article and notwithstanding anything to the
  contrary hereinabove provided in this section,  the  agency  shall  have

  power  and  is  hereby  authorized from time to time to issue negotiable
  bonds and notes in such principal amount, as,  in  the  opinion  of  the
  agency, shall be necessary to provide sufficient funds for the making of
  equity  loans,  the  payment  of  interest  on bonds and notes issued to
  provide funds for the making of such equity loans, the establishment  of
  reserves  to  secure such bonds and notes, and all other expenditures of
  the agency incident to and necessary or convenient  for  the  making  of
  such equity loans;
    (b)  The  provisions of paragraphs (b), (c) and (d) of subdivision one
  of this section shall apply to equity notes  and  bonds  issued  by  the
  agency for the making of equity loans.
    (c)  The  provisions of subdivision two of this section shall apply to
  equity notes and bonds issued by the agency for  the  making  of  equity
  loans  except  that  any such equity notes, or any renewals thereof, and
  any such equity  bond  shall  mature  at  such  time  or  times  as  the
  resolution  of  the  members  shall  provide,  but in no event at a time
  subsequent to six months after the latest  maturity  date  of  the  last
  maturing  equity  loan  made  from  the proceeds of such equity notes or
  bonds.
    (d) Any resolution or resolutions  authorizing  any  equity  notes  or
  equity  bonds  or  any  issue thereof for the making of equity loans may
  contain any of the provisions set forth in  subdivision  three  of  this
  section, which shall be a part of the contract with the holders thereof,
  except  that  no such resolution or resolutions shall pledge any fees or
  charges collected by  the  agency  pursuant  to  subdivision  eleven  of
  section  forty-four,  income  from mortgages owned by the agency, or any
  payments of principal of mortgages owned by the agency.
    5. It is the intention hereof that any pledge made by the agency shall
  be valid and binding from the time when the pledge  is  made;  that  the
  monies  or  property  so  pledged  and thereafter received by the agency
  shall immediately be subject to the lien  of  such  pledge  without  any
  physical  delivery thereof or further act; and that the lien of any such
  pledge shall be valid and binding as against all parties  having  claims
  of  any  kind  in  tort,  contract  or  otherwise  against  the  agency,
  irrespective of whether such parties have notice  thereof.  Neither  the
  resolution nor any other instrument by which a pledge is created need be
  recorded.
    6.  Neither  the  members  of  the agency nor any person executing the
  notes or bonds shall be liable personally on the notes or  bonds  or  be
  subject  to  any  personal  liability or accountability by reason of the
  issuance thereof.
    7.  The  agency,  subject  to  such  agreements  with  noteholders  or
  bondholders  as  may  then  exist,  shall  have  power  out of any funds
  available therefor to purchase notes or bonds of the agency, which shall
  thereupon be cancelled, at a price not exceeding (a)  if  the  notes  or
  bonds  are  then  redeemable,  the redemption price then applicable plus
  accrued interest to the next interest payment date thereon,  or  (b)  if
  the  notes  or  bonds  are  not  then  redeemable,  the redemption price
  applicable on the first date after such purchase upon which the notes or
  bonds become subject to redemption plus accrued interest to such date.
    8. The state shall not be liable on notes or bonds of the  agency  and
  such  notes  and  bonds shall not be a debt of the state, and such notes
  and bonds shall contain on the face thereof a statement to such effect.